KARACHI: The Sindh High Court (SHC) has restrained the Customs Department from issuing final orders on a constitutional petition filed by 49 companies, seeking release of bank guarantees, deposited with the nazir of the court at the time of provisional release of the subject consignments.
According to details, Karachi Tubes Mills (Private) Limited, AN Industries (Private) Limited and others, sought issuance of certificates to the petitioner for the release of the bank guarantees. A two-member bench, headed by Chief Justice Sajjad Ali Shah was hearing the petition.
During the hearing, Kashif Nazeer advocate filed power on behalf of the Customs Department and sought time for file para-wise comments on the next hearing. Therefore, the court adjourned the hearing for December 21, 2016 and continued the interim order passed earlier.
On the last hearing, the court had restrained the respondent and directed them that no final order shall be passed until further orders of this court.
Earlier, the counsel for the petitioners stated that the petitioners were leading businessmen and were engaged in manufacturing of welded steel pipes and were paying their liabilities regularly. He said that they imported raw material, including alloyed prime hot rolled steel sheets in coils.
He said that the goods were imported from China on various dates against free trade agreement between Pakistan and China at the zero percent duty. However, the customs officials cleared the goods at the rate of 5 percent customs duty which was challenged and at the order of the SHC, the petitioners filed differential amount through bank guarantees. Therefore, the goods were released by the way of pay orders of 50 percent duty taxes to custom department and 50 percent with nazir of the court.
The petitioners paid 100 percent by way of pay order or the bank guarantees, however, the appellate authority passed order in favor of the petitioners and when petitioners approached the the customs authorities for the release of securities, the customs authority released only bank guarantees whereas others collectors released all kinds of securities such as pay orders and bank guarantees.
Citing chairman Federal Board of Revenue (FBR), Chief Collector South, East and West as respondents, the petitioners pleaded that the court may direct the respondents to issue certificates to the petitioners for release of pay orders/ bank guarantees, deposited with the nazir at the time of provisional release of the subject consignments.